Country Operations Business Plan. Afghanistan November 2017

Transcription

1 Country Operations Business Plan November 2017 Afghanistan This document is being disclosed to the public in accordance with ADB s Public Communications Policy 2011.

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3 1 CURRENCY EQUIVALENTS (as of 19 September 2017) Currency unit afghani (AF) AF1.00 = $ $1.00 = AF ABBREVIATIONS ADB Asian Development Bank ANPDF Afghanistan National Peace and Development Framework ANR agriculture and natural resources COBP country operations business plan CPS country partnership strategy (i) (ii) NOTES The fiscal year (FY) of the Government of Afghanistan and its agencies ends on 21 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2014 ends on 21 December In this report, "$" refers to US dollars. Vice-President Wencai Zhang, Operations 1 Director General Sean O Sullivan, Central and West Asia Department () Team leaders Team members Samuel Tumiwa, Country Director, Afghanistan Resident Mission, Thomas Panella, Chief of Water Sector Group, Sustainable Development and Climate Change Department Asad Aleem, Senior Energy Specialist, Shanny Campbell, Deputy Country Director, Marko Davila, Country Specialist, Mohammad Hanif Ayubi, Senior Project Officer, Witoon Tawisook, Principal Transport Specialist, In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

4 CONTENTS Page CONSISTENCY OF BUSINESS PLAN WITH COUNTRY TNERSHIP STRATEGY 1 APPENDIXES 1. Country Assistance Results Areas 2 2. Indicative Assistance Pipeline 3 3. Assistance Program for Current Year 6 4. Indicative Knowledge Publications and Events 8

5 1 CONSISTENCY OF BUSINESS PLAN WITH COUNTRY TNERSHIP STRATEGY 1. The country operations business plan (COBP), for Afghanistan is closely aligned with the strategic focus of the country partnership strategy (CPS), The key strategic focus of the Asian Development Bank (ADB) will remain on infrastructure development in the transport, energy, and agriculture and natural resources (ANR) sectors, which the Afghanistan National Peace and Development Framework (ANPDF) identifies as priority areas The government s ultimate objective as detailed in the ANPDF is to attain self-reliant, sustainable economic growth, and move away from a dependency on development partner assistance. Under the ANPDF s development component, the government is seeking to create sustainable employment in seven priority areas, including agriculture (including irrigation, water management, and development of agriculture value chains), energy and infrastructure development, and regional integration; all featured in ADB s current operations and the CPS, Overall, infrastructure is expected to lead to job creation and private sector development in the short to medium term, and create economic growth and opportunities in the medium to long term. 3. The government prefers that ADB continue its strategic focus on three infrastructure sectors in Afghanistan, and this is reflected in COBP, Investment projects undertaken during the current COBP period include building institutional capacity and strengthening sector governance. Additionally, ADB s Private Sector Operations Department will pursue commercially viable transactions that generate financial returns while also delivering on ADB s overall mission to promote environmentally sustainable and inclusive economic growth. The expected results of ADB assistance are summarized in Appendix 1. Appendixes 2 and 3 present the project pipeline, and Appendix 4 summarizes the knowledge publications and events. 1 Government of Afghanistan Afghanistan National Peace and Development Framework (ANPDF), 2017 to Kabul.

6 2 Appendix 1 Key Country Development Outcomes that ADB Contributes to 1. Transport Transport network scope and efficiency improved COUNTRY ASSISTANCE RESULTS AREAS Key Areas of Assistance Construction or rehabilitation of national roads and CAREC corridors Road operations and maintenance, and asset management Expansion of railway infrastructure ADB Indicative Resource Allocation in Amount: $200 million (ADF) Share of COBP envelope: 30% Changes from Last COBP Not applicable first COBP 2. Energy Power supply and electrification rate increased Transport policies and institutional capacity building Construction of regional and domestic electricity transmission lines Amount: $147 million (ADF) and $190 million (cofinancing) Not applicable first COBP Construction of electricity distribution lines Share of COBP envelope: 22% Renewable energy generation Rehabilitation of gas wells Energy sector capacity development and institutional reform 3. Agriculture, Natural Resources, and Rural Development Agriculture productivity increased Construction or rehabilitation of irrigation and water resources infrastructure Provision of agriculture market infrastructure Agriculture value chain development Integrated water resources management Agricultural and natural resource-based institutional strengthening and reforms Amount: $ million (ADF) Share of COBP envelope: 48% Not applicable first COBP Increased participation of women in agriculture ADB = Asian Development Bank, ADF = Asian Development Fund, CAREC = Central Asia Regional Economic Cooperation, COBP = country operations business plan. Source: ADB estimates.

7 Appendix 2 3 INDICATIVE ASSISTANCE PIPELINE Table A2.1: Lending Products, Strategic Cost ($ million) Agendas and Year of ADB Gov t Cofinance Project/Program Name a Sector Poverty Targeting Drivers of Change Division TRTA/ PDA Total Regular OCR COL ADF Grants Total 2018 Firm Turkmenistan ENE GI IEG, GEM, CWEN Afghanistan Pakistan (TAP) Transmission Line (phase 1) b, RCI Horticulture Value Chain ANR GI IEG, ESG, CWER Development Sector Project Total Standby Solar Energy Generation Project 2 (MFF, tranche 5) c ENE GI IEG, GEM, CWEN Total Firm Arghandab Integrated Water Resources Development Project (phase 1) Solar Energy Generation Project 2 (MFF, tranche 5) c ANR GI IEG, ESG, ENE GI IEG, GEM, CWER CWEN Total Standby Railway Connectivity TRA GI IEG, RCI, CWTC Project Total Firm Railway Connectivity Project TRA GI IEG, RCI, CWTC

8 4 Appendix 2 Strategic Agendas and Drivers of Change Year of TRTA/ PDA Cost ($ million) Project/Program Name a Sector Poverty Targeting Division Total Regular OCR COL ADF Grants Total Kabul-Managed Aquifer ANR GI IEG, ESG CWER Recharge Project Total Standby Central Asia Regional Economic Cooperation Corridors 5 & 6 (Salang Corridor) Project Arghandab Integrated Water Resources Development Project (phase 2) TRA GI IEG, RCI, ANR GI IEG, ESG, ADB Gov t Cofinance CWTC TBD CWER Total ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture, natural resources, and rural development; COL = concessional OCR lending; CWEN = Energy Division; CWER = Environment, Natural Resources and Agriculture Division; CWTC = Transport and Communications Division; ENE = energy; ESG = environmentally sustainable growth; GEM = gender equity and mainstreaming; GI = general intervention; Gov t = government; IEG = inclusive economic growth; MFF = multitranche financing facility; OCR = ordinary capital resources; = partnerships; PDA = project design advance; RCI = regional integration; TBD = to be determined; TRA = transport; TRTA = transaction technical assistance. a Given the provisional nature of the indicative lending program, composition of lending instruments in the actual loan delivery may change. The lending program includes ADF grants. b Initial conversations with Afghanistan National Army Trust Fund, managed by the North Atlantic Treaty Organization, indicate that cofinancing of $150 million will be possible in The funds would be managed through Afghanistan Infrastructure Trust Fund. c Cofinancing will be sought from the Green Climate Fund. Source: Asian Development Bank.

9 Appendix 2 5 Table A2.2: Nonlending Products and Services, Assistance Type ADB Amount ($'000) Sources of Funding Others Amount ($'000) Assistance Name Sector Division Source Source 2018 Preparing the Railway Connectivity Project TRA CWTC TRTA TASF 1, ,500.0 Total 1, , Public Management Support II FIN CWPF KSTA TASF 1, ,500.0 Total 1, , None ADB = Asian Development Bank; CWPF = Public Management, Financial Sector and Trade Division; CWTC = Transport and Communications Division; FIN = finance; KSTA = knowledge and support technical assistance; TASF = Technical Assistance Special Fund; TRA = transport; TRTA = transaction technical assistance. Source: Asian Development Bank. Total ($'000)

10 6 Appendix 3 Project/Program Name a Sector Poverty Targeting Firm Kabul Jalalabad Kunar ENE GI IEG, Transmission Line Project GEM, (MFF, tranche 4) Solar Energy Generation ENE GI IEG, Project (MFF, tranche 3) b GEM, Additional Financing to Road Asset Management Project ASSISTANCE PROGRAM FOR CURRENT YEAR Table A3.1: Lending Products, 2017 Strategic Agendas and Drivers of Change TRA GI IEG, RCI, Division Year of TRTA/ PDA Total Regular OCR Cost ($ million) ADB ADF COL Grants Total Gov t Cofinance CWEN CWEN CWTC Qaisar Dari Bum Ring TRA GI IEG, CWTC Road Project c RCI, Total ADB = Asian Development Bank; ADF = Asian Development Fund; AFG = Afghanistan; COL = concessional OCR lending; CWEN = Energy Division; CWTC = Transport and Communications Division; ENE = energy; GEM = gender equity and mainstreaming; GI = general intervention; Gov t = government; IEG = inclusive economic growth; MFF = multitranche financing facility; OCR = ordinary capital resources; = partnerships; PDA = project design advance; RCI = regional integration; TRA = transport; TRTA = transaction technical assistance. a Given the provisional nature of the indicative lending program, the composition of the lending instruments actually delivered may change. The lending program includes ADF grants. Investment lending accounted for 100% of sovereign lending commitments in the 3-year period of b The MFF Energy Supply Improvement Investment Program is estimated to be $1.22 billion. The project is expected to receive $15 million of parallel cofinancing from Islamic Development Bank. This is still to be confirmed. c The project includes $180 million of cancelled funds from Grant 0244-AFG under the MFF Road Network Development Investment 2 and $5 million in Asian Development Fund Disaster Risk Reduction funding. Source: Asian Development Bank.

11 Appendix 3 7 Table A3.2: Nonlending Products and Services, 2017 Sources of Funding ADB Others Assistance Name Sector Division Assistance Type Source Amount ($'000) Source Amount ($'000) Total ($'000) Support for Infrastructure Investment Policy II PSM AFRM KSTA TASF 1,000 AITF 1,100 2,100 Arghandab Integrated Water Resources ANR CWER TRTA TASF 200 AITF Development Investment Program (Supplementary) Horticulture Value Chain Development Sector ANR CWER TRTA TASF Project Total 1,800 1,700 3,500 ADB = Asian Development Bank; AFRM = Afghanistan Resident Mission; AITF = Afghanistan Infrastructure Trust Fund; ANR = agriculture, natural resources, and rural development; CWER = Environment, Natural Resources and Agriculture Division; KSTA = knowledge and support technical assistance; PSM = public sector management; TASF = Technical Assistance Special Fund; TRTA = transaction technical assistance. Source: Asian Development Bank.

12 8 Appendix 4 INDICATIVE KNOWLEDGE PUBLICATIONS AND EVENTS Table A4.1: Knowledge Publications and Events for 2018 Title of Publication or Event Subject Type Post Conflict Performance Indicators Report 2018 Governance and public sector management Urban Sector Assessment: Afghanistan Urban development Infrastructure Project Evaluation Criteria Governance and public sector management Infrastructure Investment Plan Governance and public sector management PPP Implementation Guideline Governance and public sector management National Infrastructure Plan (Update) Governance and public sector management Renewable Energy Roadmap and Action Plan Energy Power Tariff Model and Framework Energy National Grid Expansion Energy Power Synchronization Study Energy Domestic Energy Generation Potential Energy Energy Sector Master Plan Energy Department or Sector Group or Thematic Group Technical Assistance TA ( ) a TA ( ) a TA ( ) a TA ( ) a TA (8808) Total number of publications = 12 Total number of events = 0 = Central and West Asia Department, PPP = public private partnership, TA = technical assistance. Note: Publications may include databases, multimedia, and other forms of. Events may include event organization and training or capacity development. a TA pending approval. Source: Asian Development Bank.

13 Appendix 4 9 Table A4.2: Additional Knowledge Publications and Events Delivered in 2017 Title of Publication or Event Subject Type Afghanistan Transport Sector Master Plan Update ( ) Transport Afghanistan Water Sector Development Strategy Water Afghanistan: Financial Sector Assessment Finance Department or Sector Group or Thematic Group Funding Source TA (7994) Total number of publications = 3 Total number of events = 0 = Central and West Asia Department, TA = technical assistance. Note: Publications may include databases, multimedia, and other forms of. Events may include event organization and training or capacity development. Source: Asian Development Bank.

14 10 Appendix 4 Table A4.3: Innovation, Advanced Technology, and Pilot Initiatives to be Implemented in 2018 Item Nature Project Number Sector or Theme Division PPP Implementation Guidelines INO PSM AFRM Renewable Energy Roadmap and Action Plan INO ENE CWEN Total number of innovation, advanced technology, and pilot initiatives = 2 AFRM = Afghanistan Resident Mission, CWEN = Energy Division, ENE = energy, INO = innovation, PPP = public private partnership, PSM = public sector management. Source: Asian Development Bank.